SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17562 / June 13, 2002

On June 7, 2002, the Honorable Tena Campbell, U.S. District Judge for the District of Utah, issued a permanent injunction by consent against Interstate Transfer Company ("ITC") and Janis A. Patterson ("Patterson"), ITC's president and owner. The defendants were enjoined from violating an Order to Cease and Desist from violations of the transfer agent record-keeping provisions of the federal securities laws. That order was issued by the Commission in March 1999. In addition, the order required Interstate and Patterson to pay a civil penalty of $10,000.

The Commission's Complaint alleged that in March 1999, the Commission had ordered ITC and Patterson to cease and desist from violations of Sections 17(a)(3), 17(f)(2) and 17A(d) of the Securities Exchange Act of 1934 and Rules 17f-2, 17Ad-2, 17Ad-6, 17Ad-10, 17Ad-15 and 17Ad-16 thereunder, which are regulations governing the conduct of registered transfer agents. The Complaint alleged that ITC and Patterson continued to violate virtually all of the regulations they were ordered by the Commission in 1999 to cease violating. The Complaint requested that, pursuant to Section 21(e) of the Securities Exchange Act of 1934, the federal district court enforce the Commission's Cease and Desist Order, enjoin ITC and Patterson from further violations and fine the defendants for their violations of the Commission's Order.